The TJX Companies Inc. (TJX)

Update 5/22/2017: TJX gapped to the downside after earnings were published and then crept back up to about the midpoint of the gap. That partial recovery and the workings of time decay brought the position to profitability. I exited at 25% of maximum potential profit.

Shares showed a net decline of 2.4% over seven days, or a -123% annual rate. The options position produced a 33.3% yield on debit for a +1,738% annual rate.

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TJX publishes earnings on Tuesday before the opening bell.

I shall use the series of monthly options that trade for the last time 32 days hence, on June 16.

Implied volatility stands at 28%, which is 2.6 times the VIX, a measure of the volatility of the S&P 500 index.

TJX’s IV stands in the 74th percentile of its annual range and at the peak of its most recent broad movement.

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SINA Corp. (SINA)

Update 5/17/2017: SINA gapped sharply to the upside immediately after earnings were published, retracing a portion of the rise the day after, allowing for a slightly improved, although still losing, exit at a $10.20 debit.

Shares showed a net rise of 7.6% over two days, or a +1,395% annual rate. The options position produced a -37.9% loss on debit for a -6,924% annual rate.

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SINA publishes earnings on Tuesday before the opening bell.

I shall use the series of monthly options that trade for the last time 32 days hence, on June 16.

Implied volatility stands at 41%, which is four times the VIX, a measure of the volatility of the S&P 500 index.

SINA’s IV stands in the 57th percentile of its annual range and at the peak of its most recent broad movement.

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The Home Depot Inc. (HD)

Update 5/16/2017: HD gapped to the upside after earnings were published, and I exited for $3.67, or 25% of maximum potential profit.

Shares rose by 1.4% from my entry a day earlier, or a +517% annual rate. The options position produced a 33.2% yield on debit for a +12,134% annual rate.

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HD publishes earnings on Tuesday before the opening bell.

I shall use the series of weekly options that trade for the last time 11 days hence, on May 26.

Implied volatility stands at 22%, which is 2.1 times the VIX, a measure of the volatility of the S&P 500 index.

HD’s IV stands in the 60th percentile of its annual range and the 90th percentile of its most recent broad movement.

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5/15 – 3 p.m. New York time

I entered four new positIons: TJX, HD, SINA and XOP. I analyzed OAS but rejected the trade, and declined to analyze XRT as its implied volatility fell below my 50th percentile cut-off point in relation to its most recent broad movement.

I exited six positions: BAC, IBM, JWN, M, NVDA and SNAP. I also partially exited LB.

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The week’s two major reports will be published on Tuesday: Housing starts at 8:30 a.m. New York time and industrial production statistics at 9:15 a.m.

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5/12 – 3:20 p.m. New York time

I entered no new positions today.

I exited positions in OAS and XRT, each for a profit.

Look for The Week Ahead to be posted on Saturday and Monday’s Live, with prospective trades, to be posted on Sunday.

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5/11 – 3:00 p.m. New York time

I have exited DIS in addition to the already noted exits of TEVA and KSS. I entered no new positions.

The order attempting to exit OAS remains active. I shall update after the closing bell if it is filled.

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Teva Pharmaceutical Industries Ltd. (TEVA)

Update 5/11/2017: TEVA zig-zagged sharply in response to its earnings announcement. I exited at  a $1.25 debit, or 29.4% of maximum potential profit.

Shares were down 1.7% over a day, or a -627% annual rate. The options position produced a 41.6% yield on debit for a +15,184% annual rate.

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TEVA publishes earnings on Thursday before the opening bell.

I shall use the series of weekly options that trade for the last time eight days hence, on May 19.

Implied volatility stands at 39%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.

TEVA’s IV stands in the 54th percentile of its annual range and the peak of its most recent broad movement.

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Snap Inc. (SNAP)

Update 5/15/2017: SNAP gapped sharply to the downside after earnings were published and then rose for three subsequent trading days, partially mitigating the loss. I exited for a loss for a $3.75 debit.

Shares declined by 13.7% over five days, or a -1,003% annual rate. The options position produced a -15.7% loss on debiy for a -1,149% annual rate.

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SNAP publishes earnings on Thursday after the closing bell.

I shall use the series of weekly options that trade for the last time eight days hence, on May 19.

Implied volatility stands at 74%, which is 7.4 times the VIX, a measure of the volatility of the S&P 500 index.

SNAP’s IV stands at its peak since the stock began trading publicly on March 2.

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Macy’s (M)

Update 5/15/2017: M gapped sharply to the downside the immediately after earnings were published and continued to decline in the ensuing two trading days. I exited the position for a debit of $3.65.

Shares declined by 19.9% over five days, or a -1,437% annual rate. The options position produced a -42.5% loss on debit for a -3,100% annual rate.

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M publishes earnings on Thursday before the opening bell.

I shall use the series of weekly options that trade for the last time nine days hence, on May 19.

Implied volatility stands at 47%, which is 4.7 times the VIX, a measure of the volatility of the S&P 500 index.

M’s IV stands in the 88th percentile of its annual range and at the peak of its most recent broad movement.

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